Depreciation on equipment for the year is $6,300. Required: (a) Record the journal entry if the company prepares adjustments once a year on December 31. Refer to the Chart of Accounts for exact wording of account titles.(b) Record the journal entry if the company prepares adjustments on a monthly basis on December 31. Refer to the Chart of Accounts for exact wording of account titles.

(a) Dec 31   Depreciation Expense-Equipment    6300 Dr

                      Accumulated Depreciation-Equipment    6300 Cr

(b) Dec 31  Depreciation Expense-Equipment    525 Dr

                      Accumulated Depreciation-Equipment   525 Cr

Explanation:

(a) The normal entry to record the depreciation expense is always to debit the depreciation expense account for the relevant asset as the expense is increasing and credit the contra asset account of Accumulated depreciation created against that particular asset.

If the adjustments are prepared once a year, that means the depreciation expense has not been recorded and charged for the whole year and it will be charged whenever the adjustments are made. So, on 31 december when the adjustments are made, we will charge the whole year's deprecation on equipment as depreciation expense and credit accumulated depreciation by the same amount ( in this case 6300 for the whole year).

(b) If the adjustments are made on a monthly basis that means that every month the relevant month's depreciation is charged and recorded as an expense. Assuming the depreciation is a straight line basis, we simply charge the December's depreciation on 31 December which is calculated as,

6300 / 12 = 525 / month

answer: heh

explanation:

be mindful of your own reaction,use positive self-talk,   and debrief.